Download Chapter 01 – The Art and Science of Satisfying Customers

Chapter 01 – The Art and Science of Satisfying Customers
Learning Objective 1
What is Marketing?
Want-satisfying
power of a
good or service
Identifying consumer needs
Definition of Marketing
Designing products that meet those
needs
Communicating information about
products, prospective, customers
Making items available at times and
places meeting consumer needs
Pricing products to reflect costs,
competition & customers’ ability to
pay
Marketing
activities
include
Marketing is an
organizational function and
a set of processes for
creating, communicating,
and delivering value to
customers and for
managing customer
relationships in ways that
benefit the organization
and its stakeholders
Goods &
services
offered by
marketers
provide
Providing necessary service and
following up post purchase
Learning Objective 2
Four Eras in the History of Marketing
Production Era
Sales Era
Marketing Era
Form Utility –
conversion of raw
materials and
components into
finished goods &
services
Time Utility –
availability of goods
and services when
consumers want them
Utility
Place Utility –
availability of goods
and services at
convenient locations
Ownership Utility –
Ability to transfer title to
goods and services
from a marketer to
buyer
Relationship Era
Production Orientation
Sales Orientation
Consumer Orientation
Relationship Marketing
Business philosophy stressing
Belief that consumers will resists
purchasing non-essential goods
and services, with the attitude
toward marketing that only
creative advertising and personal
selling can overcome this
resistance.
Business philosophy
incorporating the marketing
concept that emphasizes in first
determining unmet consumer
needs and then designing a
system for satisfying them.
Development and maintenance
of long term cost effective
relationships with individual
customers, suppliers, employees
and other partners for mutual
benefit.
efficiency in producing a quality
product, with the attitude
toward marketing that; “a good
product will sell itself”
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Learning Objective 3
Marketing Myopia
Marketing Myopia – management failure to recognize
the scope of its business. Businesses that are product
oriented may be seen as myopic since they endanger
their future growth.
Learning Objective 4 & 5
Extending Traditional Boundaries of
Marketing
Marketing in Not for Profit Organizations
Categories of Non Traditional Marketing
Person Marketing – Marketing efforts designed to cultivate the
attention, interest and preference of a target market toward a person
(Typically a political candidate or a celebrity)
Characteristics of Not for Profit Marketing
•
Not for profit organizations hope to generate
revenue to support their causes and uses
cost effective ways to achieve them. Their
motive is not to chase behind the bottom line
Place Marketing – Marketing efforts to attract people and
organizations to a particular geographic area
(company profitability) of an organization
•
Not for profit organizations also pursue
Cause Marketing – Identification and marketing of a social issue,
cause, or idea to selected target markets
marketing activities to promote their causes
•
These organizations may have less control
over the organization’s destiny than profit
Event Marketing – Marketing of sporting, cultural and charitable
activities to selected target markets
seeking firms
•
Not for profit organizations may have some
degree of monopoly power within a given
geographical area of operations
Organizational Marketing – Marketing by mutual benefit
organizations, service organizations and government organizations
intended to influence others to accept their goals, receive their services
or contribute to them in some way
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Learning Objective 6
From Transactional Based Marketing to
Relationship Marketing
Relationship Marketing
Transactional Marketing
Buyer and seller exchanges
characterized by limited
communications and little or
no ongoing relationships
between the parties
NEW
CUSTOMERS
REGULAR
CUSTOMERS
LOYAL
SUPPORTER
Mobile Marketing
Interactive Marketing
Marketing messages
transmitted via wireless
technology
communications in which
the customer controls the
amount and type of
information received from
a marketer through such
Relationship marketing does not
only apply to individual
consumers and employees
Social Marketing
The use of online social media
as communications channel
for marketing messages
Buzz Marketing
Word of mouth messages that
bridge the gap between a
company and its products
•
The formation of strategic
alliances between companies that
forms the supply chain is a
common trend
Affects business to business
relationships and with the firm’s
suppliers and distributors
channels as the internet
and virtual reality kiosks
ADVOCATE
Developing Partnerships & Strategic Alliances with
Suppliers
Using Interactive and Social Marketing to Build
Relationships with Customers
Buyer-seller
Development and maintenance
of long term cost effective
relationships with individual
customers, suppliers,
employees and other partners
for mutual benefit
Converting New Customers to Advocates
•
A strategic alliance is a
partnership in which two or more
companies combine resources
and capital to create competitive
In the past suppliers were seen
as adversaries which must
fiercely negotiate prices. Today
that view has changed to where
both marketers and suppliers
enjoy the benefits of building
collaborative relationships
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advantages in a new market
•
Not for profit organizations often
make use of strategic alliances to
raise awareness and funds for
their cause or to achieve their
goals
Buying
Ensure product offers are
available in sufficient
quantities to meet consumer
demand
Selling
Using advertising, personal
selling and sales promotion to
match products to consumer
needs
Learning Objective 8
Ethics and Social Responsibility
•
Some organizations may fall short
following an ethical code of conduct in
Ethics – are
moral standards
of behaviour
expected by a
society
engaging with marketing activities
Exchange Functions
•
Following an ethical code of conduct is
an important aspect for any business
Transportation
Storing
Moving products from their
point of production to locations
convenient for purchases
Warehousing products until
needed for sale
•
It is applicable for both public as well for
private sector organizations
Social Responsibility –
•
marketing philosophies,
programs as part of their overall
policies, procedures
Learning Objective 7
Universal Functions of Marketing
and actions that have
mission
•
the enhancement of
society’s welfare
Risk Taking
Financing
Dealing with uncertainty about
future customer purchases
Providing credit for channel
members (wholesale and
retailers) and consumers
Many firms include social responsibility
as a primary objective
They produce benefits such as
improved customer relationships,
increased employee loyalty, market
place success and improved financial
performance
•
Sustainable products balance the
needs of industry, economy with
the needs of the environment
•
Standardizing and Grading
Ensuring product offerings
meet quality and quantity
controls of size, weight and
other variables
Securing Marketing
Information
Collecting information about
consumers, competitors and
channel members for use in
making marketing decisions
For it to be successful, it should
penetrate a firm’s corporate
strategy
•
Public affairs and communications
personnel in marketing are involved
with sustainability
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Sustainable products
– that can be
produced, used and
disposed of with
minimal impact on the
environment